Sir Richard Branson’s Virgin Atlantic is reported to be in talks with El Al about a possible deal between the two airlines.

A number of options were under consideration and a takeover or substantial investment in El Al by Virgin Atlantic had not been ruled out, a source told Globes Online

But Shoma Amin, a spokeswoman for Virgin Atlantic was quick to deny rumours.She said: "We explore many opportunities but can confirm we will not be taking over or investing in El Al."

It is thought to be more likely that the talks will develop into a codesharing agreement between the two airlines, where they will share passenger capacity on certain routes.

The source also said that Mr Branson is full of praise for El Al under the leadership of its current CEO Haim Romano.

We explore many opportunities but can confirm we will not be taking over or investing in El Al. Shoma Amin, Virgin Atlantic

An El Al spokesperson in Israel said: "The company conducts negotiations with various companies around the world on a variety of issues. The company does not comment on these matters."